Sony needs to put a lower price tag on the PS4 in order to attract fans
The PlayStation 4 needs to be aggressively lower priced if Sony wants to actually attract customers, at least according to Inside Network analyst Billy Pidgeon, who believes the new console needs to hit the $299/€299 price point.The PlayStation 4 was revealed by Sony earlier this week and, while the company actually revealed a lot of games, not to mention its actual controller or the PlayStation 4 Eye, it didn't share some key details, like the actual console or its price.
As such, analysts have begun speculating at what price Sony will release its next-generation console.
The latest industry specialist is Billy Pidgeon of Inside Network, who advises Sony to aim for the "magical" $299/€299 price point, which should result in much bigger sales.
"I'd like to see maybe two models, one under $300 and one under $400 would be ideal," he told GamesIndustry.
"$299 is the magic price point. I think this current generation took way too long to get there. It has to be under $400 and honestly if they could subsidize it further and take more of a hit, it might be worth their while in the long run."
Even so, Pidgeon highlights that sales in the first year of availability for both the PlayStation 4 and the Xbox 720 will be much slower, as consumers will still probably opt for the lower-priced PS3 or Xbox 360.
"Uptake during the first year is going to be slower than people expect. And to keep a viable business in terms of profit margins, they're going to have to do their best to keep their current-gen platforms viable as they're perhaps moving into next-gen more slowly than they did last time," Pidgeon said.
"Historically, we've seen generational transitions where the previous generation just dropped off a cliff when the new console came out, but that would really hurt either Sony or Microsoft if that happened."
As such, both Sony and Microsoft will have to find a careful balance between keeping the PS3 and Xbox 360 relevant while marketing the higher priced PS4 and Xbox 720.